The Long Road to Euro-Zone Ratings Upgrades

By

Richard Barley

Jan. 18, 2013 5:33 a.m. ET

What does a euro-zone sovereign have to do to get some credit from a ratings firm? Take Ireland: Moody's rates its government debt at a "junk"-grade Ba1 with a negative outlook, suggesting a reasonable chance of a downgrade. That is out of kilter with Standard & Poor's and Fitch, whose ratings are three notches higher, and seems to ignore Dublin's many positive achievements.

Ireland's track record is impressive. It has consistently met budget-deficit targets, regained competitiveness, is outperforming many...